Sensex ends flat as disappointing IIP data hits sentiments

Sensex ends flat as disappointing IIP data hits sentiments
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First Published: Wed, Mar 12 2008. 05 37 PM IST
Updated: Wed, Mar 12 2008. 05 37 PM IST
Agencies
Mumbai: The Se nsex closed almost flat on 12 March 2008 after an early rally was hit by data showing industrial production slowed sharply in January, dealers said.
The 30-share benchmark of the Bombay Stock Exchange closed up 4.83 points or 0.03% to 16,127.98.
Similarly, the 50-share Nifty of the National Stock Exchange closed 6.10 points up at 4872 points.
Dealers said auto and other manufacturing shares slumped after the government reported that industrial output rose 5.3% in January.
That was well below expectations of around 8% growth and well off the 11.6% gain reported in the same month last year.
“The swing in the market was dramatic and caused by the poor industrial production number,” said Vivek Kudva, managing director for Franklin Templeton in Mumbai.
“There is now caution that the economy could slow sharply in the coming year,” he said.
The rupee strengthened against the dollar to 40.36 from 40.47 and rose against the euro to 61.86 from 62.11.
Leading manufacturer Tata Steel slumped Rs52.60 or 6.42% to Rs766.45 while the country’s largest car maker Maruti Suzuki declined Rs7.40 or 0.85% to Rs858.95.
Late morning update
The US Federal Reserve once again came to the rescue of global markets, sending the BSE benchmark Sensex sharply up by 368 points in late morning deals on all-round buying support.
The Federal Reserve’s latest announcement that it will lend $200 billion of Treasury Securities to the credit markets to prevent further damage, boosted the global market sentiment today, brokers said.
After overnight gain of nearly 200 points, the 30-share index Sensex was up by 560 points at 16,683.37 in early trade.
The Sensex was later quoted at 16,491.67 at 10.30 am.
The National Stock Exchange index, Nifty, also improved by 95.55 points to 4,958.45 from last close of 4,865.90.
Besides China, which just managed to remain in positive terrain, all other Asian markets were trading higher by nearly 2.5% this morning on the back of overnight rally on Wall Street.
The Dow Jones Industrial Average and the Nasdaq Composite Index were up by 416.66 points and 86.42 points yesterday, highest gains in nearly last five years.
Led by realty, banking and capital goods segment, majority other sectoral shares also showed sharp-moderate gains.
Operators and retail investors, which were trapped in latest heavy sell-off, seemed to be booking profits at higher levels on concerns that US Fed move will not completely resolve the credit problems.
Opening
Mumbai: The Bombay Stock Exchange benchmark Sensex gained 560 points in early trade on 12 March on heavy buying by funds in fundamentally strong shares.
The 30-share index, which gained 200 points yesterday, rose by 560.22 points to 16,683.37 in the first five minutes of trade.
Similarly, the National Stock Exchange index, Nifty, moved up by 153.30 points to 5,019.20 as heavy weight stocks like Reliance Industries, Infosys and Tata Steel recorded handsome gain.
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First Published: Wed, Mar 12 2008. 05 37 PM IST